With many people struggling to make ends meet each month, there are many that are on the lookout for short term finance solutions to help tide them over. When your money does not stretch far enough, it can cause serious issues such as not being able to stay on top of bills or make housing payments. However, by deciding upon a suitable short term finance option, you can ensure you have somewhere to turn in the event that this does happen from time to time.
When it comes to short term finance, you need to bear in mind that the ability to get finance can be based on various factors including your credit rating and score. If you have damaged credit, you may find that your finance options are far more limited compared to someone that has good credit. Often, you may only be able to get short term finance that is based on security through collateral such as car title loans, which are secured against the title of your vehicle.
What are the other options?
If you do not own a vehicle and cannot therefore consider finance such as a car title loan, there are plenty of other options available based on your credit score and history. One popular option is to take out a credit card for use in emergencies and then repay what you use within the interest free period. If your credit is damaged, you will most likely only be able to get credit cards that have a very high rate of interest. However, if you intend to repay the balance within the interest free period, this will not be an issue because you won’t have to pay any interest on it anyway.
Another option that some people turn to is a payday loan. While these loans have received a bad rap over the years due to the crippling rates of interest, it is only really a huge issue if you keep rolling the loan over from month to month. If you borrow the money on a short term basis such as a few weeks, you will have to pay fees and interest but it may be far less than you think. This is something that may be worth looking at if you are certain that you can repay the money within a short period of time rather than rolling it over.
If you are looking for finance over a slightly longer term such as twelve months, you could consider a personal loan. Generally, these are not suitable if you only want to borrow money for a few weeks because you may incur early repayment fees for paying it off too quickly. However, some providers are able to offer quick cash loans on a short term basis, so this is another option that you may want to look at.
These can all prove to be effective means of obtaining short term finance to make ends meet as and when the need arises.